The following transactions took place in the town of Burchette during 20X3: 1. A

Question

The following transactions took place in the town of Burchette during 20X3:

1. A bond issue of $12,000,000 was authorized fro the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General ledger accounts of a new Capital Project Fund.

2. The bonds were sold at a premium of $90,000

3. The cost of issuing the bonds, $80,000, was paid

4. An order was placed for materials estimated to cost $6,500,000

5. Salaries and wages of $500,000 were paid

6. The premium, net of bond issuance costs, was transferred to a debt service fund.

The following transactions took place during 20X4

7. The materials were received; the actual cost was $6,585,000

8. Salaries and Wages of $4,010,000 were paid

9. All outstanding bills were paid

10. The project was completed. The accounts were closed, and the remaining balance was transferred to the Debt Serivce Fund.

a.Prepare all journal entries budgetary and actual including entries to record the Capital Projects Fund transactions for 20X3 and 20X4.

b. Prepare a Capital Projects Fund Balance sheet as of December 20X3

c. Prepare a Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the project, including (1) the year ended December 31, 20X3 and (2) a seperate budgetary combined comparision statement for the years ended December 31, 20X3 and 20X4..

Could i get help with letters B or C or both?

Explanation / Answer

Ans b Capital project fund Balance Sheet as on 31 December Assets Amount $ Cash 700000 Total assets 700000 Liabilities Debt Service Fund 10000 Fund Balance-unreserved designated for capital projects 690000 Total liabilities 700000 Cash=$1200000+$90000-$80000-500000-10000 Note: The order was placed but the material was not received so no entry

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